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Friday, 9 October 2015

Turmeric settled down by -0.48% at 7930 due to weakness in demand at the spot market. However downside seen limited on poor sowing due to weak rainfall during monsoon period in the producing belts of Andhra Pradesh. Good rains in second part of September in southern peninsula region may enhance the turmeric production and quality. Turmeric sowing area reported high in Maharashtra and Tamil Nadu state during the current sowing period. However, deficient monsoon in August and early September may affect production in rainfed areas. As per dept of commerce data, turmeric exports during April-Jul, 2015 pegged at 32,158 tonnes while the export for the 2014-15 is 90,738 tonnes compared to 78,360 tonnes in FY14. As on 30th Sep 2015, turmeric sowing In AP is recorded at 15,413 hectares increase over last years’ acreage as well normal sowing area progress while in Telangana, only 40,830 hectares of turmeric has been sown which is 82 per cent of normal acreage.Trading Ideas: Turmeric trading range for the day is 7680-8196. Turmeric prices ended with losses due to weakness in demand at the spot market. However downside seen limited on poor sowing due to weak rainfall during monsoon period in the producing belts of Andhra Pradesh. NCDEX accredited warehouses turmeric stocks dropped by 29 tonnes to 10530 tonnes.In Nizamabad, a major spot market in AP, the price ended at 7980.4 rupees gained 10.85 rupees.

The impact of the Chinese economic slowdown was highlighted on Thursday by data showing that German exports for August marked their sharpest decline since the height of the global financial crisis. While today may see a gap up opening as Commodities giant Glencore said on Friday (Oct 9) it will cut 500,000 tonnes of zinc production, or around 4 per cent of global supply, in its latest move to withstand weak commodities prices.Trading Ideas: Zinc trading range for the day is 107-110.8. Zinc dropped as market continues to disappoint currently as deficit fails to materialise again despite mine closures. The impact of the Chinese economic slowdown was highlighted by data showing that German exports for August marked their sharpest decline. Zinc daily stocks at Shanghai exchange came up by 275 tonnes.

Thursday, 8 October 2015

Gold settled down -0.25% at 26555 eased on Wednesday, falling from a two-week high on the firmer dollar while losses were capped on expectations that the US Fed will delay raising interest rates until next year. Support also seen earlier after the IMF cut its global growth forecasts for a fourth successive year – it now sees worldwide expansion of 3.1 percent this year, the weakest since 2009, with Chinese growth slowing to 6.8 percent this year and 6.3 percent in 2016. Investors await the release of the minutes from the Fed's September meeting on Thursday for further hints on whether the U.S. central bank could raise short-term interest rates before the end of the year. Last month, the FOMC voted to leave its benchmark Federal Funds Rate at its current rate between zero and 0.25%, marking the 55th consecutive meeting it decided to keep the rate unchanged at a near-zero level.

Gold trading range for the day is 26214-26958. Gold eased on the firmer dollar while losses were capped on expectations that the U.S. Federal Reserve will delay raising interest rates until next year. Fed chair Janet Yellen said it was likely the FOMC could hike rates by the end of the year barring unforeseen events over the next several weeks. SPDR gold trust holdings dropped by 0.26% i.e. 1.78 tonnes to 687.20 tonnes from 688.98 tonnes.

Crude oil futures rose in early Asian trade on Thursday, shrugging off a surprise build in U.S. inventories as some Chinese traders returned following a weeklong National Day holiday period.

U.S. crude stocks rose by 3.1 million barrels to 461 million last week as refineries reduced production and idled capacity. Analysts had expected an increase of 2.2 million barrels.

Both major oil benchmarks rose more than 1 percent on Thursday although trading was thin in the early part of the Asian session. With China open for business trading is likely to more volatile in commodities, ANZ said in a morning note.

U.S. crude was up 50 cents, or 1.05 percent, at $48.31 at 0039 GMT. The contract fell 1.5 percent on Wednesday after three days of gains.

Brent crude, the global oil benchmark, was up 53 cents, or 1.03 percent, at $51.86 a barrel, after falling 1.1 percent on Wednesday.

With little data out this week, apart from industry and government inventory numbers, and China on holiday for the first three days, the market has focussed on longer-term demand trends that have supported prices.

Wednesday, 7 October 2015

CRUDE OIL FUTURE rose further in thin Asian trade on Wednesday after breaking out of a month-long trading range on a forecast suggesting a global glut in supply may be easing.

Oil prices jumped more than $2 a barrel in the previous session with the global benchmark, Brent crude LCOc1 , closing above $50 a barrel for the first time in a month.

The contract rose 40 cents to $52.32 a barrel by 0110 GMT, after settling up $2.67, or 5.4 percent on Tuesday. But the volume was low with Chinese traders on holiday for National Day holidays that last through Wednesday.

The West Texas Intermediate (WTI) benchmark for U.S. crude gained 74 cents to $49.27 a barrel. The contract rose $2.27, or 4.9 percent, on Tuesday.

Global oil demand is expected to increase by the most in six years as supply from non-OPEC countries stalls, the U.S. Energy Information Administration said in its Short Term Energy Outlook on Tuesday.

U.S. production, which has surged in recent years and caused a roughly 50 percent decline in prices since June last year, is also starting to decline.

Gold held close to its highest in nearly two weeks on Wednesday, as more sluggish U.S. economic data supported investor views that the Federal Reserve will delay a rate hike to next year.

FUNDAMENTALS

* spot gold= was little changed at $1,147.40 an ounce by 0039 GMT. The metal climbed to $1,151.20 in the previous session, its highest since Sept. 24.

* Data on Tuesday showed that U.S. exports took a hit from an ailing global economy in August and imports from China surged, fuelling the largest expansion of America's trade deficit in five months. ID:nL1N1260PQ

* The data, following a weak nonfarm payrolls report last week, showed the U.S. economy's vulnerabilities to a strong dollar and weak demand in foreign markets, which could impose further caution on the Fed's plans to hike interest rates for the first time in nearly a decade. ID:nL1N1260PQ

* Higher rates could dent demand for non-interest-paying gold.

* Fed Chair Janet Yellen said last month she expected the U.S. central bank to begin raising rates this year, but weak U.S. economic data since then and caution about the global economy has prompted many to push out expectations.

Tuesday, 6 October 2015

Cardamom prices fell by 0.99 per cent on Tuesday at the Multi Commodity Exchange (MCX) due to the adequate stocks availability in the physical market on account of higher supply from the producing belts of Chandausi in Uttar Pradesh.

At MCX, Cardamom futures for October 2015 contract were trading at Rs. 781.10 per kg, down by 0.99 per cent, after opening at Rs. 783 against the previous closing price of Rs. 788.90.

It touched the intra-day low of Rs. 778.50 till the trading. (At 10.45 AM today). Sentiment weakened further as the traders booked profits at the prevailing levels in the midst of a subdued demand for the commodity.

Kerala (70 per cent), Karnataka (20 per cent) and Tamil Nadu (10 per cent) are the cardamom growing states in India while about 90 per cent of the produce is consumed within the nation. The important markets for cardamom in India are Vandanmendu, Bodinayakanur, Kumily, Thekkady, Kumbum and Pattiveeran Patti in Kerala.

Oil prices rallied today amid reports that key producer Russia was willing to discuss the global supply glut situation that has been weighing on the market, analysts said.

US benchmark West Texas Intermediate for delivery in November won USD 1.11 to USD 46.65 a barrel compared with Friday's close. Brent North Sea crude for November delivery jumped USD 1.38 to stand at USD 49.51 a barrel in late London deals.

Crude futures were "supported by a softer US dollar and talks that Russia is ready to meet OPEC and non-OPEC crude oil producers in order to discuss the market", said Myrto Sokou, senior analyst at Sucden Financial Research.

"The news provided strong upside momentum in the oil market, as Russia has been thus far unwilling to cut oil production and cooperate with the OPEC members in order to support the current low crude oil prices," she said in a note to clients. Russia is among the world's top oil producers alongside OPEC kingpin Saudi Arabia and the United States.

Monday, 5 October 2015

Oil extended gains in Asia on Monday as a decline in US drilling pointed to a slowdown in production, but concerns over demand remain after a disappointing US jobs report.

A report from Baker Hughes Inc. said the number of active rigs in the United States fell by 26 to 614 last week, the lowest in five years, helping ease concerns over the global crude oversupply that has depressed prices.

But poor unemployment data from the US continued to weigh on the market. The US Labor Department said on Friday that jobs growth in the world's biggest economy and top oil consumer faltered in September and the labour market weakened across the board. This has stoked concerns about demand for the commodity at a time when the Chinese economy is also slowing down amid a crude supply glut, analysts said.

Gold rallied on Friday after data showing that the U.S. economy added far fewer jobs than expected last month indicated that interest rates are likely to remain on hold until early next year. Gold for December delivery jumped 2.17% to $1,137.9 in late trade on the Comex division of the New York Mercantile Exchange. For the week, though, gold futures ended down 0.78% after falls earlier in the week amid uncertainty over how soon the U.S. central bank will start to tighten monetary policy. The Labor Department reported that the U.S. economy added just 142,000 jobs last month, well below expectations of the 201,000 expected by economists. August's reading was revised down to 135,000, from the initial reported figure of 173,000. Average hourly earnings were flat month-on-month and the labor force participation rate fell to just 62.4%, down from 62.6% in August. The unemployment rate was unchanged at 5.1%, in line with forecasts.